In this news article, Charles Gasparino highlights the shaky position of Elon Musk and Tesla in the market. Despite Musk being the world’s richest person with a net worth above $200 billion, the recent decline in Tesla’s stock has raised concerns about the future of the company and its impact on Musk’s fortune. The article mentions that Tesla’s stock has dropped significantly over the past month, and its new product, the Cybertruck, is not selling well. Additionally, the company’s plans for expansion may face challenges in a higher interest rate environment, with a potential recession looming in 2024.
Gasparino discusses the skepticism surrounding Tesla and electric vehicles (EVs) in general. While Tesla has seen strong revenues and the ability to produce cars cheaper than competitors, there are doubts about the sustainability of EVs as a mass-market product. The article also raises concerns about the environmental impact of mining the chemicals in Tesla’s batteries and the source of electricity for EVs. Furthermore, the article suggests that the Environmental Social Governance (ESG) investment craze, which has contributed to Tesla’s market allure, may be fading, leading to potential repercussions for Tesla’s stock.
Gordon Johnson, a longtime Tesla skeptic, believes that Tesla’s financial metrics are questionable and its sales growth has been in decline. Despite having a higher stock market value than the next seven largest automakers combined, Tesla has only sold a small percentage of cars compared to these companies in the past year. Johnson argues that Tesla is grossly overvalued, which raises doubts about Musk’s status as the world’s richest person.
Overall, the article raises concerns about Tesla’s stock performance, its ability to compete in the EV market, the sustainability of EVs from an ESG perspective, and the company’s questionable financial metrics. These factors contribute to uncertainties surrounding Elon Musk’s finances and the future of Tesla.
